What Is an OCO Order? Set a Stop-Loss and Take-Profit at Once
An OCO order lets you set both a stop-loss and a take-profit in one go: when one triggers, the other is canceled automatically. Here's how it works.
What it is
OCO (one cancels the other) is a pair of linked orders. As soon as one fills, the exchange automatically cancels the other. Most often it's a take-profit (a limit order) and a stop-loss (a stop order) for a position you already hold.
Example
You bought a coin at $100. You place an OCO sell order:
| Part | Price | What happens |
|---|---|---|
| Take-profit | $120 | Price gets there: sold at a profit, the stop is canceled |
| Stop-loss | $92 | Price drops: sold with a limited loss, the take-profit is canceled |
The risk is $8 per coin, the target is $20. The risk/reward ratio is about 1 to 2.5.
Why you need it
- No need to sit at the chart: your exit plan is set in advance.
- No leftover orders. Without OCO, after the take-profit fills, the stop stays in place and may open an unwanted trade.
- Fewer emotions: you can't "change your mind" in the moment.
Common mistakes
- Stop too close to the price: it gets triggered by normal noise.
- Mixing up the stop price and the limit price in the stop part.
- Order size larger than the coins you hold: the order won't be placed.
How to work out your stop and target in advance is covered in the articles how to read a trading signal and how to calculate position size.
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- OCO is two orders where one cancels the other.
- A convenient way to set a stop and a target in a single order.
- The stop-loss in the pair is mandatory: without it, OCO makes no sense.
Frequently Asked Questions
Which exchanges offer OCO?
Many major crypto exchanges offer OCO for spot trading. On futures, the stop and target are usually set right when you open the position, with the same effect.
Can I modify an OCO after placing it?
Usually you cancel the pair and place it again with new prices. Make sure your position still has a stop-loss after canceling.
What if the price gaps past my stop?
The stop part may fill at a worse price than set or, if it's a stop-limit, not fill at all. Keep an eye on your position during sharp moves.
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